News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) has reported a robust fiscal second quarter for 2025, with revenues growing by 5% year-over-year to $2.24 billion. The company’s net income from continuing operations surged by 58% to $306 million, driven by strong performances across its Digital Real Estate, Dow Jones, and Book Publishing segments. Total Segment EBITDA saw an impressive 20% rise to $478 million.
Key performance drivers
• REA Group’s record quarter: The company’s Digital Real Estate Services business, led by REA Group, posted record revenues of $343 million, up 17% year-over-year, powered by a strong Australian residential market.
• Dow Jones growth: Revenues at Dow Jones hit $600 million, reflecting a 10% growth in its Energy division and an 11% rise in Risk & Compliance services. This segment benefited from increased circulation and higher professional information business revenues.
• Book publishing expansion: Revenues in this segment climbed 8%, while Segment EBITDA rose 19%, driven by continued demand for both physical and digital books.
• News media challenges and cost discipline: While News Media revenues faced a slight decline, the company highlighted rigorous cost controls and digital development as factors helping to improve overall margins.
Strategic move: Foxtel sale to DAZN
In a major strategic shift, News Corp announced the sale of its Foxtel business to global sports streaming provider DAZN for an enterprise value of A$3.4 billion. The transaction, which positions News Corp for greater focus on its core growth areas, reflects Foxtel’s successful digital transformation and is expected to create long-term value for shareholders.
Commenting on the sale, News Corp CEO Robert Thomson said: “This agreement is tangible recognition of Foxtel’s successful digital transformation, and should surely benefit our shareholders, our partners at DAZN, and all Australian sports fans.”
AI and content monetisation
Thomson also addressed the company’s position in the evolving AI landscape, emphasising News Corp’s commitment to protecting content rights.
“We are providing priceless content for Generative AI, and remain vigilant in our pursuit of degenerative AI,” he said, pointing to the company’s ongoing legal battle against AI platform Perplexity while also recognising the significance of partnerships like the one with OpenAI.
Stockholder value and future focus
The company’s move toward streamlining operations and strengthening its digital assets is expected to drive long-term stockholder value. With continued growth in its key pillars—Digital Real Estate, Dow Jones, and Book Publishing, News Corp is positioning itself as a leader in premium content and digital services.
With a keen focus on margin improvements, digital development, and strategic asset optimisation, News Corp’s fiscal Q2 2025 results underscore its ability to navigate industry shifts while capitalising on emerging opportunities.